Net Returns on Mutual Funds | CFA® Level 1 Exam Preparation

Net Returns on Mutual Funds

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Net returns on mutual funds have tended to be

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A. B. C. D.

C

Most funds have not provided net returns superior to a buy-and-hold strategy that tries to emulate the aggregate market. The shortfall of performance has been about 1 percent a year, which is roughly equal to the average cost of research and trading commissions for mutual funds.